Stage 5 Commerce

Students learn about:

• Decisions affecting the quality of our lives

◦ Consumer
◦ Financial
◦ Business
◦ Employment
◦ Legal
◦ Environmental
  Franchise
◦ Selling the rights to use a
business name, image or
 Budget management system.
 A spending and saving plan.

 Good
 Collective wants
◦ An item that is tangible. It
 Goods and services provided
for the community by can be seen or touched.
governments.

 Liability
 Consumer
 Anyone who buys goods and ◦ The degree of financial
services. responsibility for any losses
incurred by a business or
individual.
 Contract
 An agreement (either written
or spoken) between two
parties; for example, a buyer  Liquidity
and seller.. ◦ Funds available to finance
spending on a day-to-day
basis
  Service
 Needs ◦ An intangible good that is
◦ Goods essential to our survival, provided by an individual or
such as food, water, shelter and organisation; for example,
clothing. legal advice or a haircut.

 Personal wants  Standard of living

◦ Luxury or non-essential goods
and services that we, as ◦ A person’s quality of life; a
individuals, would like to person’s economic, social
consume. and personal wellbeing.

 Savings  Wants
◦ The amount of money a person ◦ Luxury or non-essential
has available after paying for goods and services
needs and wants.
 The consumption of goods and services has an
important impact on the quality of people’s lives.
 Goods that are essential for our survival are
known as needs.
◦ They include food, water, shelter and clothing.
 Goods and services that we buy are not necessary
for our survival are known as wants.
◦ Examples are DVDs, perfume and movie tickets.
 Wants may not be essential for our survival but
they do help to support the lifestyle or standard
of living that we aspire to aka Quality of Life
 One important factor influencing the quality of our
lives is the amount of time that we spend working.
 On average, Australian employees are working longer
hours than they did in the past.
 Often the decision about how many hours to work
will depend on the person’s preferred lifestyle.
 Many people work longer hours to help support the
material standard of living to which they have grown
accustomed.
 Some people choose to work shorter hours so that
they have more time to consume leisure-related
services
 Worksheet found at
http://www.studyismy
buddy.com/consumer-
choice.html
 This video gives you an
overview of various
factors that you
may/not be aware of
when making a
purchasing decision
 What things that have
you consumed today?
 Are they a good,
service, need or want?
 Write definitions for
the following terms
and find a picture to
illustrate each:
◦ Goods
◦ Services
◦ Needs
◦ Wants
◦ Consumers
◦ Personal wants
◦ Collective wants
 Consumer decisions
Should I purchase
new clothes or save
money for a
computer ?

Legal decisions Business decisions.

Is there a need I
How can I exercise could meet by
my legal rights as a setting up a
consumer ? business ?

Financial decisions Employment

decisions What
Where should I should I do for work
invest my savings ? experience ?
 Family
decisions
How do my
actions impact
upon others in
my
Legal decisions household?
Health decisions.
Social life
How can I How can I stay fit
decisions.
exercise my legal How will I and ensure that I
rights as a respond get enough
consumer ? to exercise ?
pressures
from my
peers?
Decisions based on
values and beliefs. Learning/educat
What are my ion decisions.
attitudes towards What subjects
people from different should I choose
cultural backgrounds for Year 11 and
 choosing what to  choosing where to
buy buy
◦ types of goods and ◦ range of locations
services and sources
◦ different brands and ◦ types of retail outlets
products ◦ internet purchasing
and mail order
◦ locally, interstate,
globally
 The key financial decisions consumers need to
make and the importance of the decision.
◦ Spend money – to satisfy needs and wants
◦ Save money –
 Personal satisfaction and security
 Superannuation and long term investment
 Buy expensive item
 Savings history to get a loan

Develop a poster on preparing a

budget OR options for paying
(cash, credit card, direct debit etc)
OR making investment decisions
OR deciding how to receive income
(cash, fringe benefit, salary sacrifice)
 Financial requirements  Marketing – Product
 Business skills (what consumers
including technology want), Price (what
 Employee requirements competitors charge
and what consumers
 Legal structure – willing to pay),
determines liability – Promotion (how
sole trader, market), Place (where
partnership, company, sell).
franchise, cooperative.
 Quantity to produce –
 Production – consider demand.
where/how will it be
produced  Distribution – shop
(primary/secondary/ter front, direct mail,
tiary/quaternary/quina internet.
ry)
 The main types of employment decisions a person makes:
◦ Number of hours worked / number of hours for leisure activities.
◦ Sector to work in.
◦ Run business or work for someone.
◦ Adapt to change in the job market.

 How employment decisions impact on a person’s quality of

life:
◦ Number of hours with the family.
◦ Friendship time.
◦ Leisure activities.
◦ Amount of money earned.

Outline 5 examples of flexible

working practices and the advantages
of each way of working.
 Protect consumer rights.
 Responsibility of suppliers.
 Contract – when purchase item enter contract
with retailer. Right to get what paid for.

Access the NSW Office of Fair

Trading website
www.fairtrading.nsw.gov.au.
Outline the types of legal advice
this site provides for consumers.
 Environmentally aware consumers ask
themselves the following questions:
◦ Does the production or distribution process of this
product harm the environment?
◦ Does the use of the product harm the environment?
◦ Is this product recyclable?

Brainstorm the strategies

consumers can use to minimise
the impact of their consumption
decisions on the environment